CDM Sectoral Opportunities

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1 SOUTH, EAST AND SOUTH EAST ASIA Workshop Session 4 CDM Sectoral Opportunities Opportunities for CDM development in Underrepresented parties of South, South East and East AsianCountries Hemant Nandanpawar TSF Carbon Market Program Asian Development Bank

2 South/South East and East Asia Countries Broad Coverage of the S/SE/E Asia region South Asia India, Bangladesh, Bhutan, Sri Lanka, Nepal, Maldives South East Asia Lao PDR, Philippines, Thailand, Vietnam, Cambodia, Myanmar, Indonesia East Asia PRC (China), Mongolia CDM Under represented Countries (less than 10 CDM registered projects) SouthAsia Bangladesh, Bhutan, Sri Lanka, Nepal, Maldives South East Asia Lao PDR, Cambodia, Myanmar East Asia Mongolia

3 Current status of CDM Project of the region Region At Validation Requesting Registration Registered South Asia India Bangladesh Bhutan Sri Lanka Nepal Maldives South East Asia Lao PDR Philippines Thailand Vietnam Cambodia Myanmar Indonesia East Asia PRC (China) Mongolia Generic Characteristics of S/SE and EA Countries Countries of these region can be broadly categorized as high population p density like India, Bangladesh, Indonesia and low population density countries like Nepal, Bhutan, Laos Most of the small countries are land lock countries like Nepal, Bhutan, Laos and are less industralised Majority of population lives in the rural areas of the country Lack of modern sanitation and solid waste management facilities Lack of trained manpower to operate and maintain modern/ sophisticated technologies Use of diesel based powergenerationiscommonly used in small countries of the region

4 Generic Characteristics of S/SE & EA Countries Difficult geographical features and low income levels Significant suppressed demand due to difficult energy infrastructure Lower availability of conventional energy sources like fossil fuels High potential for availability of untapped renewable energy Direct use of RE based mechanical energy (like water mills) due to absence of power grid Have highh potential ti for hydro and wind power (like Nepal, Bhutan, Laos) High availability of Biomass for use as fuel (like Laos, Cambodia, Bhutan, Nepal) Lower literacy level and Language issues CDM Opportunities High potential for Renewable electricity generation projects e.g.smallhydro, Biomass, Solar, Wind SwitchingoffossilfuelbasedgenerationtoRE(hydro,wind, solar) energy based mechanical or electrical power Switching of fossil fuels to biomass based power generation or heat generation like use of biomass gasifiers Solid Waste management and Waste water treatment for methane avoidance activities Transport sector fuel switching like use of electric / Battery vehicles (in RE dominated grids) GassectorGHGavoidance opportunities (leakage) in some countries

5 Issues of CDM development in under represented countries Highest CDM project registration by URC of the region is Srilanka (7) and lowest i.e zero are Maldives. DNAs have been established in almost all the countries Overall low pace of development activities and new projects hence less opportunity of CDM. Low or zero grid emission factor due to hydro dominated national grid in some countries (Nepal, Bhutan) Less Industrialization less i l scope forcdm Lack of conducive policies of some countries Better future for post 2012 CERs as EU buyers will continue CER purchase from LDCs / SIDCs Conclusion and Way Forward Increase project viability through bundling, Program of Activities and Cross border project integration bundling for large coverage and transaction cost reduction Capacity development programs for all the stakeholders (PPs, DNAs) Positive policy initiatives by the governments of the Parties and UNFCCC Development of Standardized Baselines approach Default additionality through close work with UNFCCC Development of Suppresseddemandd methodologies Smart Negotiations Advance payment from CER buyer to pay for PDD preparation and project validation Technology transfer opportunities Investment in best technologies for long term benefits Experience from few registered it projects can be emulated ltd Specific new methodologies development initiatives are also required

6 Thank you for your kind attention Hemant Nandanpawar